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Louisiana is busy designing new lottery scratchoff games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B. or C. A can reveal "Loser," "Win $1. or "Win $50." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $500." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $1." E can reveal "Loser" or "Win $10." The probabilities at A are 9, .09, and .01. The probabilities at Bare .8 and .2. The probabilities at C are .999 and .0o1. The probabilities at D are 5 and 5. Finally, the probabilities at E are .95 and .05. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game.

Louisiana is busy designing new lottery scratchoff games. In the latest game, Bayou Boondoggle, the player is instructed to scratch off one spot: A, B. or C. A can reveal "Loser," "Win $1. or "Win $50." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $500." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $1." E can reveal "Loser" or "Win $10." The probabilities at A are 9, .09, and .01. The probabilities at Bare .8 and .2. The probabilities at C are .999 and .0o1. The probabilities at D are 5 and 5. Finally, the probabilities at E are .95 and .05. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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QUIZ NO. 3 3. Louisiana is busy designing new lottery scratchoff games. In the latest game. Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $1. or "Win $50." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $500." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $1." E can reveal "Loser" or "Win $10." The probabilities at A are 9. .09, and .01. The probabilities at B are .8 and .2. The probabilities at C are .999 and .o01. The probabilities at D are .5 and .5. Finally, the probabilities at E are 95 and .05. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game.
Transcribed Image Text:QUIZ NO. 3 3. Louisiana is busy designing new lottery scratchoff games. In the latest game. Bayou Boondoggle, the player is instructed to scratch off one spot: A, B, or C. A can reveal "Loser," "Win $1. or "Win $50." B can reveal "Loser" or "Take a Second Chance." C can reveal "Loser" or "Win $500." On the second chance, the player is instructed to scratch off D or E. D can reveal "Loser" or "Win $1." E can reveal "Loser" or "Win $10." The probabilities at A are 9. .09, and .01. The probabilities at B are .8 and .2. The probabilities at C are .999 and .o01. The probabilities at D are .5 and .5. Finally, the probabilities at E are 95 and .05. Draw the decision tree that represents this scenario. Use proper symbols and label all branches clearly. Calculate the expected value of this game.
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